Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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Annotation 220.0008

220.0008 Agent Operating in State. A person selling income tax software packages ships all products from outside California by common carrier or postal service. Although there are no employees, inventory or other assets in California, the person pays commission to a California firm that provides telephone responses regarding California sales. Orders are solicited by direct mail. The California firm, which provide telephone responses, is a California representative (agent) primarily during the income tax season. The agent answers basic questions about the software but any involved technical questions are answered by the home office. All sales orders are mailed to the out-of-state house office.

Sufficient information was received to conclude the person was a retailer engaged in business in California under section 6203 (b). The person clearly has an agent in California for the purpose of selling tangible personal property. The agent provides information to potential customers with the goal of selling tangible personal property to those potential customers. There can be no doubt that the agents are operating under the authority of the person for the purpose of selling tangible personal property since the agents are only compensated if a sale is made. 7/9/92.